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Papa John's profit up 66 percent in Q4
February 24, 2009
LOUISVILLE, Ky. -- Domestic system-wide comparable sales at Papa John's restaurants decreased 2 percent for the company's fourth quarter ended Dec. 28, the company has announced. Results were comprised of a 1.3 percent decrease at company-owned restaurants and a 2.2 percent decrease at franchised restaurants.
Domestic system-wide comparable sales for the full year 2008 increased 0.9 percent, comprised of a 1.7 percent increase at company-owned restaurants and a 0.6 percent increase at franchised restaurants.
Revenues for the quarter were $279.6 million, off slightly compared with revenues of $283.9 million in the 2007 fourth quarter. Year-to-date revenues were $1.13 billion, up 7 percent compared with revenues of $1.06 billion for the previous year.
Net income for the quarter was $12.8 million, up 66 percent compared with net income of $7.7 million for the 2007 fourth quarter. The increase was primarily due to improved results at the company's franchisee-owned cheese-buying cooperative. The cooperative lost $8 million in the fourth quarter of 2007 compared with a gain of $887,000 in the 2008 fourth quarter.
Year-to-date net income was $36.8 million, up 13 percent compared with net income of $32.7 million for the previous year.
The company opened a net 63 new locations during the quarter and 172 during the year. As of Dec. 28, there were 3,380 domestic and international Papa John's restaurants, consisting of 615 company-owned and 2,765 franchised units, operating in all 50 states and 29 countries.
Papa John's is increasing its 2009 earnings per diluted share guidance from the previous range of $1.32 to $1.40 to an updated range of $1.36 to $1.44.
"Our system performed solidly in 2008, and 2009 is off to a good start," said Papa John's founder, chairman and interim CEO John Schnatter. "With improvement in the commodities markets and good momentum in our system during the first two months of the year, we are pleased to be able to increase our earnings guidance range for 2009. During these uncertain economic times, we will continue to run our business in a disciplined manner with a continued focus on product quality and healthy unit economics."
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